Sun, 16 Aug 2020

Mumbai (Maharashtra) [India], July 14 (ANI): Financial, auto and metal stocks dragged equity benchmark indices lower on Tuesday amid persistent concerns over the record number of new coronavirus cases within and outside the country.

Investor sentiment was dented on high retail inflation which dimmed hopes of a further rate cut by the Reserve Bank of India. The June retail inflation increased to 6.09 per cent and food inflation also increased by 7.87 per cent.

The BSE SP Sensex closed 661 points or 1.8 per cent lower at 36,033 while the Nifty 50 tumbled by 195 points or 1.81 per cent at 10,607.

Except for Nifty pharma, all sectoral indices at the National Stock Exchange were in the red with Nifty private bank down by 3.3 per cent, PSU bank by 3.1 per cent, financial service by 2.4 per cent and metal by 2.5 per cent.

Among stocks, Bharat Heavy Electricals Ltd (BHEL) plunged 8.58 per cent after research house Citi downgrade it to sell from neutral with a target at Rs 34 per share.

IndusInd Bank dropped by 5.5 per cent to close at Rs 510 per share while Axis Bank slipped by 4.9 per cent and State Bank of India by 3.3 per cent. Bajaj Finserv closed 3.6 per cent lower at Rs 6,227 per share.

Both HDFC and HDFC Bank fell by 2.9 per cent and 1.9 per cent respectively after the latter conducted a probe into allegations of improper lending practices in its vehicle financing operation.

The other prominent losers were Eicher Motors, Maruti Suzuki, Adani Ports, Hindalco and Power Grid Corporation. However, Dr Reddy's, Titan and Bharti Airtel witnessed marginal gains.

Meanwhile, Asian stock markets slipped as simmering US-China tensions and fresh coronavirus restrictions in California put a lid on investor optimism.

Japan's Nikkei retreated from a one-month high and dropped by 0.87 per cent while Hong Kong's Hang Seng was down by 1.14 per cent and South Korea's Kospi by 0.11 per cent.

The United States on Monday rejected China's disputed claims to offshore resources in most of the South China Sea, a shift in tone which prompted a strong reaction from Beijing. (ANI)

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